The Group Managing Director, Skye Bank Plc, Mr. Timothy Oguntayo, has called for massive investment in manufacturing, agriculture and extractive industries to speed up the process of diversifying the nation’s economy.
He said this at a ‘Roundtable session on the manufacturing outlook for 2016’ organised by BAA Associates in Lagos.
The lender, in a statement on Monday,
quoted Oguntayo, who was a lead panelist at the event, as saying the
three sectors were critical for the success of the economic
diversification agenda of the current government in view of the
dwindling oil prices, low Gross Domestic Product growth, and rising
unemployment.
He went down memory lane, saying the
manufacturing sector contributed 10 per cent of the GDP before the oil
boom in the 1970s; but he lamented Nigeria’s dependence on oil export
and earnings since 1990.
He said the dependence on oil resulted
in the neglect of the manufacturing sector; just as low investment in
public goods and infrastructure led to the decline in manufacturing
activities.
To reverse the negative trend, the Skye Bank boss recommended the expansion of public infrastructure such as road and electricity to promote manufacturing.
In addition, he advised manufacturers to
access the Central Bank of Nigeria’s N200bn and the Bank of Industry’s
N200bn intervention funds to boost their operations.
Noting that commercial banks were not
structured to provide long-term funding but bridge finance, he said the
BoI and NEXIM Bank should be strengthened to provide long-term funding
for manufacturers.
To enhance their capacity, Oguntayo
advised manufacturing firms to focus on improving the effectiveness and
efficiency of their sales force in order to create opportunities for
sales growth.
Oguntayo expressed his support for the
import ban placed on some items that could be sourced locally, saying it
would promote import-substitution strategies and lead to less stress on
the naira.
By Oyetunji Abioye
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